June auto sales higher despite tariff talk

VW, Nissan, GM report higher sales

Staff file photo by Erin Smith / A Volkswagen plant worker in Chattanooga checks a car on the factory's assembly line.
Staff file photo by Erin Smith / A Volkswagen plant worker in Chattanooga checks a car on the factory's assembly line.

Its been a very phenomenal sales month, but not surprising given the overall economy.

Most automakers, including Volkswagen and the two other car companies with assembly plants in Tennessee, posted jumps in U.S. sales on Tuesday.

"We're looking at a good, old-fashioned bull market," said Charlie Chesbrough, senior economist for researcher Cox Automotive.

Volkswagen of America reported one of the strongest gains among automakers in June over a year ago, with a 5.7 percent hike in sales to 28,941 as its resurgence continues to gain traction after the diesel emission scandal.

For the first half of 2018, VW sales are 7.2 percent higher than the previous year, rising to 172,898 vehicles sold in the 6-month period, in large part on the strength of its sport utility vehicles, including the Chattanooga-made Atlas and Mexican-produced Tiguan.

"The first half of 2018 has been encouraging," said Derrick Hatami, executive vice president of sales, marketing and after sales for Volkswagen of America. "We have experienced a sales increase each month this year."

Jetta compact car sales, including an all-new version, totaled 7,239 in June. The Tiguan SUV accounted for 7,788 vehicles sold.

Sales of the Atlas SUV totaled 3,699 vehicles in the month, up 53.3 percent from a year ago. But the Passat midsize sedan, also made in Chattanooga, posted sales of 3,793 in June, down 28 percent from the same month last year.

Nissan Group, with an assembly plant in Smyrna, Tenn., and its U.S. headquarters in Franklin, announced U.S. sales for June of 145,096 units, up 1.2 percent compared to the prior year.

Nissan division sales set a June record at 134,398 units, an increase of 3 percent. The Nissan Rogue crossover hit a June record of 37,004 units, up 8 percent. Murano crossover sales increased 59 percent to 8,806 units, also a June high mark.

General Motors, with an assembly plant in Spring Hill, Tenn., doesn't report monthly sales figures, but second-quarter numbers were up 4.6 percent from a year earlier.

For the quarter, GM sold 758,376 vehicles. Chevrolet and GMC pickup sales for the second quarter were up 21 percent.

Chesbrough said that despite worries among some about possible tariffs, car buyers apparently aren't among those with concerns.

"It's been a very phenomenal sales month, but not surprising given the overall economy," he said.

Consumer confidence is high and there's a strong labor market, Chesbrough said. "That combination gives you a strong vehicle market."

But not everyone is buying as some motorists have already tapped into the market.

Eric Santiago of Florence, Ala., said Tuesday in Chattanooga that he bought his vehicles in 2015 and they're still doing OK.

"They're still doing pretty well," he said.

Caleb Victorino of Decatur, Ala., said he, too, isn't in the market for new autos.

"We've already got good vehicles," he said.

Hamilton County new vehicle registrations fell 11.8 percent in June over a year ago to 1,109, according to the Clerk's Office. For the first half of 2018, new vehicles titled in Hamilton County are down 12.1 percent.

Nationally, the first half in sales prompted Cox Automotive to raise its full-year forecast from 16.7 million vehicles to 16.8 million. That's off from last year's 17.2 million but is still seen as strong.

Ford sales climbed 1.2 percent in June over a year ago as it sold 230,635 vehicles for the month.

Fiat Chrysler posted an 8 percent gain in the month to 202,264 vehicles as it benefited from momentum in its Jeep brand, up 19 percent.

Honda sales were up 4.8 percent to 146,563 with SUVs and pickups up 12 percent.

Toyota also rose 3.6 percent to 209,602 vehicles. Sales of pickups and SUVs jumped 13.7 percent.

Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318. Follow him on Twitter @MikePareTFP.

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